UNU-INWEH - World Enters “Era of Global Water Bankruptcy” UN Scientists Formally Define New Post-Crisis Reality for Billions
“This report tells an uncomfortable truth: many regions are living beyond their hydrological means, and many critical water systems are already bankrupt”
Click here to read the article on UNU-INWEH.
This recent report from the United Nations University Institute for Water, Environment and Health (UNU-INWEH) introduces a new way of understanding the world’s growing water challenges, declaring that many regions have entered an “era of global water bankruptcy.” Rather than describing water scarcity as temporary stress or short-term crisis, the authors argue that long-term overuse, pollution and climate pressures have pushed rivers, aquifers, wetlands and glaciers beyond thresholds where past conditions can realistically be restored.
Drawing on global datasets and peer-reviewed research, the report shows how widespread and interconnected these trends have become. More than half of the world’s large lakes have lost water since the early 1990s, around 70% of major aquifers are in long-term decline, and billions of people now live in regions where total water storage is shrinking or unstable. Agriculture sits at the center of this challenge, accounting for roughly 70% of global freshwater withdrawals and relying heavily on groundwater in many regions, linking water depletion directly to food security and economic stability.
UN researchers stress that responding to this new reality requires a shift away from short-term emergency responses toward long-term “bankruptcy management.” This includes preventing further irreversible damage, rebalancing water use to match degraded natural limits, transforming water-intensive sectors, and strengthening institutions that protect not just water itself, but the natural systems that sustain the hydrological cycle. They also highlight that the heaviest burdens of water scarcity often fall on rural communities, Indigenous Peoples, and other vulnerable populations.
As water systems become more tightly linked through global trade, climate feedbacks, and migration, national-scale, data-driven initiatives are increasingly important for anticipating risks and guiding adaptation. Projects like Canada1Water (C1W) demonstrate how integrated hydrological modelling and climate data can help identify vulnerabilities in both surface water and groundwater systems. By supporting science-based planning and long-term resilience strategies, C1W reflects the kind of proactive, system-wide approach the UN report calls for — helping decision-makers move beyond reacting to crises and toward managing freshwater resources within sustainable limits for the future.